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Geography & Strategic Importance
Armenia is a landlocked country located in the South Caucasus region, occupying the northeastern part of the Armenian Highlands. It shares borders with Turkey to the west, Iran to the south, Georgia to the north, and Azerbaijan to the east, placing it at a strategically significant crossroads between Europe and Asia.
Natural Resources and Industry
Armenia is rich in both metallic and non-metallic mineral resources, though it lacks significant energy resources and remains reliant on imports for oil and natural gas. Key mineral reserves include copper, molybdenum, iron, lead, zinc, gold, silver, antimony, and aluminum. The country boasts 7 copper-molybdenum deposits, 4 standalone copper mines, 14 associated gold deposits, 1 bauxite deposit, and 2 iron ore zones, with copper-molybdenum reserves totaling 1.95 billion tonnes.
Non-metallic resources are diverse, including volcanic rock, perlite, basalt, granite, black granite, and obsidian. Notably, proven perlite reserves are estimated at 150 million cubic meters.
Demographics and Language
Armenia is a multi-ethnic country, with ethnic Armenians accounting for approximately 98% of the population. Minority communities include Russians, Yazidis, Kurds, Assyrians, Greeks, Ukrainians, and Jews.
The official language is Armenian, though Russian is widely spoken, and English is increasingly popular among the younger generation, reflecting growing interest in Western education and business.
Fiscal and Trade Performance (2023)
State Budget:
Revenue: AMD 2.3587 trillion (~USD 6.01 billion)
Expenditure: AMD 2.5476 trillion (~USD 6.49 billion)
Fiscal deficit: AMD 188.89 billion (~USD 481 million), up 17.3% YoY
Domestic Trade:
Total turnover: AMD 5.4924 trillion (~USD 13.99 billion), up 25.7% YoY
Retail sales: AMD 1.8113 trillion (~USD 6.42 billion), up 11.1% YoY
Wholesale sales: AMD 3.4214 trillion (~USD 8.72 billion), up 34.4% YoY
Auto sales: AMD 259.59 billion (~USD 660 million), up 35.8% YoY
Industrial Sector (2023)
Industrial value-added: AMD 2.7832 trillion (~USD 7.09 billion), accounting for 29.3% of GDP, with 4.1% growth YoY.
Mining sector: AMD 463.2 billion, down 6.4%, contributing 16.6% of total industrial value.
Manufacturing: AMD 1.9701 trillion, up 6.7%, comprising 70.8% of industry value-added.
Key industries: food & beverage processing, tobacco, and basic metals
Electricity production: AMD 256.9 billion (~USD 650 million), up 9.8%, representing 9.2% of total industrial output.
Enterprises and Employment:
Total industrial enterprises: 13,150, including:
Micro (fewer than 9 employees): 11,854
Small (10-49 employees): 1,003
Medium (50-249 employees): 227
Large (250+ employees): 66
Industry employment: 123,800 people
Average monthly wage: AMD 269,000, up 4.2% YoY
Trade Agreements and Tariff Policies
WTO Membership: Armenia joined the World Trade Organization (WTO) in February 2003 and aligns domestic regulations with WTO standards. The country maintains a liberal foreign trade regime.
Regional Trade Agreements: Armenia has signed multiple free trade and mutual benefit agreements with seven CIS countries and Ukraine, offering reciprocal tariff reductions and tax incentives.
Notable agreements include:
Iran: Temporary Free Trade Zone Agreement (May 2018)
Singapore: Trade in Services, Investment Agreement (Oct 2019)
Serbia: Free Trade Agreement (Oct 2019)
EU Preferential Tariffs:
Under the EU Generalised Scheme of Preferences (GSP), Armenia was a GSP+ beneficiary country until December 31, 2023. From 2014-2023, Armenian goods enjoyed a 3.5% tariff reduction over MFN rates.
Armenia no longer qualifies for the EU’s extended GSP treatment as of January 1, 2022.
EU-Armenia Partnership:
The Comprehensive and Enhanced Partnership Agreement (CEPA) with the EU entered into force on March 1, 2021, enhancing bilateral cooperation in trade and governance.
Eurasian Economic Union (EAEU):
Armenia joined the EAEU on January 2, 2015, after signing the treaty in 2014 alongside Russia, Belarus, and Kazakhstan.
Despite limited market reach due to landlocked geography and closed borders with Turkey and Azerbaijan, Armenia benefits from duty-free access to EAEU markets and preferential access to the EU.
Foreign Trade Overview (2023)
Total trade: USD 20.72 billion, up 46% YoY
Imports: USD 12.31 billion, up 40.2%
Exports: USD 8.41 billion, up 55.3%
Trade deficit: USD 3.9 billion
Main trade partners:
Top 5 overall: Russia, UAE, China, Iran, USA (63.2% of total trade)
Top export markets: Russia, UAE, China, Portugal, Iraq
Top import sources: Russia, China, USA, Iran, Germany
China-Armenia Bilateral Trade (per Chinese customs):
Total: USD 1.585 billion, up 14.4%
China exports to Armenia: USD 598 million, up 25.1%
China imports from Armenia: USD 987 million, up 8.8%
Trade Composition
Top Armenian exports:
Precious/semi-precious stones and metals,
Machinery and equipment,
Minerals,
Vehicles
Top imports:
Machinery and equipment,
Precious/semi-precious stones and metals,
Vehicles,
Minerals,
Textiles and apparel
China-Armenia trade specifics:
China exports: boilers, machinery, electrical equipment and parts
China imports: copper ores/concentrates, woven and non-woven garments and accessories
Import Policies and Duties
Import regime:
Most goods face no licensing or quota requirements, except for sensitive categories involving health, environment, and security (e.g., pharmaceuticals, chemicals, weapons, radioactive materials).
Quarantine and origin certification required for animals and plants.
Pharmaceuticals must be licensed by the Ministry of Health.
Duties and Taxation:
VAT: 20% standard rate, equivalent to 16.7% of total value.
Excise tax: Applied on alcohol, tobacco, and fuel.
Tariff bands:
0% for capital goods (e.g., machinery)
10% for consumer goods
Vehicles: 15% for new, 20% for 5-7 years old
WTO and EAEU Compliance:
As a WTO member, Armenia initially applied simplified rates (0% and 10%).
Since joining the EAEU, Armenia is transitioning to the union's common external tariff schedule.
Customs valuation: Based on CIF contract value, with fallback to comparable goods, domestic prices, or other benchmarks when necessary.
Tax Exemptions:
For government-sanctioned investments, re-exported goods, temporary imports/exports for processing, international transportation assets, currency and securities.
Currency: All trade settlements must be conducted in Armenian dram (AMD).
Blooming Armenia Trade Data - Stay Updated
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